Okuzeka
Insurance vocabulary · Life & Health Insurance

Surrender value

Meaning in insurance, with examples

nounAdvanced term

In insurance, surrender value means: The amount of money a policyholder receives if they cancel a savings-type life policy before it ends.

In Turkish: iştira değeri, geri satın alma değeri

How it is used

Appears in life insurance statements and in conversations about cancelling. Customers surrender a policy and receive its surrender value, which in the early years is usually less than the premiums paid. US English often says 'cash surrender value'.

Example sentences

  1. If you cancel now, the surrender value will be lower than what you've paid in.

  2. The annual statement shows the current surrender value of your policy.

Common collocations

  • surrender a policy
  • cash surrender value
  • surrender charge
  • early surrender
  • whole life insuranceLife insurance that lasts for the person's whole life as long as premiums are paid, and usually builds up a cash value over time.
  • lapseTo stop being valid because the premium was not paid or the policy was not renewed in time.
  • life insuranceInsurance that pays a sum of money to the named beneficiaries when the insured person dies, and in some products also builds up savings.
  • annuityA financial product, often sold by life insurers, that turns a lump sum into regular payments, for example every month for the rest of a person's life.

More terms: Life & Health Insurance

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This page explains English vocabulary for learners. It is not financial advice.